Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

Nifty Futures : Momentum Traders are Back in the Game

1 min read

Nifty futures bounced higher with short-term momentum players in control on Friday evening. Short term momentum play is witnessed at Friday low and 2 day high where momentum traders piled up at key reference levels 11464 and 11503. Immediate support zone comes around 11503 levels.

Nifty Futures ended -0.8% for the week with hammer pattern formation on the weekly timeframe. Daily sentiment turned positive on friday closing with neutral global market bias. Price sustaining above 11503 levels could possibly bring 11638 in the very short term.

Nifty Market Profile Charts

Quick-flip strategy continues to be in the positive mode with immediate supports around 11531. Momentum could decrease if price trades below 11531 but could still maintain buy mode. Strategy could possibly turned to sell mode only if price started trading below 11490 levels.

From the Options Perspective, 11400PE writers and 11500PE writers are in charge with expiry supports upgraded to 11400 levels. on the higher side 11800CE writers are still at control on the higher side. Nifty PCR is at 1.18 moderately bullish. If Nifty holds above 11500 then possibly we could be trading in 11500 – 11800 range for the next week.

Nifty Futures – 5min charts – Quick Flip

Nifty 4 hourly sentiment continues to be positive for the 2nd day. A slight reduction in Nifty Premium is seen. Current premium stands at 32. Volatility Index IndiaVIX declined from 15.45 to 13.84 levels this week.

Nifty 4 Hourly Sentiment

Key Economic Factors

1)US President Donald Trump has instructed aides on Thursday to proceed with tariffs on about $200 billion more in Chinese products despite Steven Mnuchin’s attempt to restart talks with Beijing to resolve the trade war.

2)Relief in USDINR move as it touched an all-time low of 72.91 on Wednesday and closed at Rs 71.8550 on Friday.

3)August WPI inflation at 4.53% Vs 5.09% (MoM); Core inflation at 5% Vs 4.80% (MoM)

4)Prime minister Narendra Modi will hold another economic review meeting with key policymakers on Saturday to discuss possible interventions by the government to address the macroeconomic challenges.

5)India’s trade deficit narrowed in August from a five-year high, stood at $17.39 billion, compared with $12.72 billion in the same month last year, according to data from the Ministry of Commerce. The trade gap had widened to a five-year high of $18 billion in July.

6)Infrastructure Leasing & Financial Services Ltd.’s downgrade to junk has put Rs 10,000 crore worth of investments by insurers and pension funds at risk.


[Image Source : Bloombergquint ]

Overall Global sentiment remains neutral. From Nifty Futures short term perspective 11490-11503 levels should act like a short terms support zone for further uptrend. Anything below the band nifty could get into short term downtrend.

Rajandran R Founder of Marketcalls and Co-Founder Algomojo. Full-Time Derivative Trader. Expert in Designing Trading Systems (Amibroker, Ninjatrader, Metatrader, Python, Pinescript). Trading the markets since 2006. Mentoring Traders on Trading System Designing, Market Profile, Orderflow and Trade Automation.

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